16 April 2025 : Daily Current Affairs

1. The approach to regulating AI in India

(Source – The Hindu, International Edition – Page No. – 9)

Topic: GS2 – Governance, GS3 – Science and Technology

Context

India is rapidly adopting AI but lacks a formal national strategy or regulatory framework. This raises concerns about ethical use, accountability, and inclusive growth.

Global AI Governance Trends

• Over the past year, the global focus on Artificial Intelligence (AI) governance has shifted from human rights and safety to innovation and economic growth.

• Despite this shift, only a few countries such as China, the EU, Canada, Korea, Peru, and the U.S. have implemented laws specifically regulating AI.

• Some countries, like the U.K., Japan, Brazil, Costa Rica, Colombia, and Pakistan, have draft AI bills awaiting approval.

• Around 85 countries and the African Union have released national AI strategy documents that outline goals, plans, budgets, and ethical principles for AI development.

India’s Current Approach to AI

• India does not have a formally approved national AI law or strategy document.

• Instead, it focuses on a government mission supporting AI development through the IndiaAI initiative.

• A 2018 document by NITI Aayog proposed a national strategy, but it has not been officially adopted or allocated a budget.

• The IndiaAI mission includes seven pillars aimed at creating an innovative and trustworthy AI ecosystem.

• An expert advisory group is currently developing recommendations for AI governance frameworks, but their official adoption remains unclear.

Strengths and Gaps in India’s Approach

• India’s flexible approach allows room to adapt to changes in technology, global politics, and public sentiment.

• However, this flexibility comes with a major drawback — there is no clear vision or roadmap for India’s AI goals and implementation plans.

• The absence of a unified strategy leads to reactive efforts that may rely on individual leadership rather than structured policies.

• AI usage is growing rapidly in India, but it is still mainly concentrated in global powers like the U.S., EU, U.K., and China.

Need for Safeguards in AI Use

• As AI use increases, it must not lead to discrimination, privacy breaches, or exclusion in sectors such as education, healthcare, and public services.

• Currently, most AI regulations in India are voluntary and not well defined.

• There is limited public knowledge about how algorithms are used, evaluated, or how they impact everyday life.

• AI-generated content has already caused social unrest in India, highlighting the urgency of clear regulations and civic awareness.

Learning from Global Models

• Countries have followed different models of AI regulation.

• The DPDP Act, 2023 in India follows a centralised and cross-sectoral model, similar to the EU and China.

• The U.S. follows a decentralised, sector-specific model, while China has separate laws for types and uses of AI.

• India can adopt a similar or hybrid model, using the DPDP Act as a foundation.

Way Forward for India

• Creating an AI policy could be a practical first step.

• It would help test enforcement mechanisms before passing formal laws.

• A clear AI policy should outline India’s vision, ethical use guidelines, infrastructure plans, priority sectors, and responsible authority.

• Public discussions must also be started to ensure transparency and accountability in AI implementation.

PYQ: Introduce the concept of Artificial Intelligence (AI). How does AI help clinical diagnosis? Do you perceive any threat to privacy of the individual in the use of Al in healthcare? (150 words/10m) (UPSC CSE (M) GS-3 2023)

Practice Question: Discuss the need for a comprehensive AI policy in India. How can India balance innovation with ethical safeguards and public accountability in AI deployment? (150 Words /10 marks)

2. Trump’s Tariff Politics Strain India-US Ties and Undermine Strategic Trust

(Source – Indian Express, Section – Explained, Page – 19)

Topic: GS2 – International Relations

Context

President Donald Trump’s administration has imposed tariffs—primarily targeting China—as part of his commitment to the “Make America Great Again” agenda. These measures are meant to display strength and deliver on campaign promises, even as the administration negotiates trade deals with allies like India.

Analysis of the news

India’s Diplomatic Dilemma

• India finds itself in a delicate position. While the US is a strategic partner, the imposition of tariffs on India has introduced transactional elements into the relationship.

• Despite India’s proactive diplomatic efforts, including early negotiations and high-level engagements, the country remains impacted by broader US economic policies.

China: The Central Adversary

• Trump views China as America’s primary geopolitical and economic threat. Unlike his first term, where advisors moderated his stance, Trump 2.0 is bolder and largely unchecked.

• His administration is now pressuring global businesses to move away from China, intensifying the rivalry beyond tariffs into global supply chain dynamics.

Collateral Damage: Allies Also Suffer

• To prevent China from circumventing tariffs through third countries, the US has extended punitive measures to many nations, including India.

• While India’s relatively lower tariffs provide a slight edge, the broader indiscriminate approach has strained relationships with allies and created a climate of uncertainty.

Fraying Goodwill and Strategic Trust

• Decades of effort to build India-US trust through diplomatic, civil society, and business engagement are being eroded.

• Trump’s aggressive actions, including deportations of Indians, have weakened the perception of the US as a reliable partner, empowering skeptics who favor deeper ties with Russia and China.

US Campuses Losing Their Shine

• Trump’s harsh immigration stance and punitive measures against foreign students, including Indians, have tarnished the US’s image as an academic haven.

• The restrictive environment undermines American soft power, as suspicion once reserved for Chinese nationals now affects students from across the globe, including India.

Call for Strategic Clarity

• India is urging the US to differentiate between allies and adversaries. Rather than imposing blanket punitive policies, New Delhi advocates for a cooperative, focused strategy that strengthens alliances like the Quad and preserves long-term goodwill.

• A broad-brush punitive approach, it warns, could backfire.

Practice Question: President Trump’s tariff-centric approach to foreign policy has introduced unpredictability in global trade and strained ties with strategic partners like India.” Critically examine the impact of the Trump administration’s trade and immigration policies on India-US relations. (250 Words /15 marks)

3.NITI Aayog launches Report on ‘Unlocking Over $25 Billion Export Potential – India’s Hand & Power Tools Sector’

(Source – https://pib.gov.in/PressReleasePage.aspx?PRID=2121901 )

Topic: GS3 – Indian Economy

Context

NITI Aayog’s new report outlines strategies to boost India’s hand and power tools exports to over $25 billion by 2035. It highlights sectoral challenges, global market trends, and key reforms needed to strengthen India’s position as a manufacturing hub.

Sector Potential and Growth Opportunity

• NITI Aayog released a report highlighting the economic potential of India’s hand and power tools sector.

• The sector can significantly contribute to India’s growth and aims to position India as a global manufacturing hub.

• The report sets a roadmap to enhance India’s global competitiveness and increase its market share in exports.

Global Market Overview

• The global hand and power tools market is valued at $100 billion, projected to reach $190 billion by 2035.

• Hand tools currently form a $34 billion market, expected to grow to $60 billion.

• Power tools represent $63 billion, projected to rise to $134 billion, largely driven by electrical tools.

India’s Current Export Share

• India exports $600 million worth of hand tools (1.8% market share).

• Power tools exports stand at $470 million (0.7% market share).

• In comparison, China holds 50% of hand tools and 40% of power tools export market share.

Future Export Target and Employment Potential

• India aims to achieve $25 billion in exports from this sector in the next decade.

• This could generate up to 35 lakh jobs, with a 10% share in power tools and 25% in hand tools.

Key Challenges

• India faces a 14–17% cost disadvantage due to higher input costs, lower productivity, and logistic inefficiencies.

• Raw material costs, overtime wage restrictions, interest rates, and inland transport add to the challenges.

Strategic Recommendations

• Develop clusters: Create 3–4 modern industrial clusters over 4,000 acres under the PPP model.

• Reform markets: Ease Quality Control Orders, import duties, and simplify export schemes.

• Bridge cost support: Provide ₹8,000 crores support if needed, expected to yield 2–3x tax returns.

Practice Question: How can India enhance its global competitiveness in the Hand and Power Tools sector to achieve its $25 billion export target? (150 Words /10 marks)

Prelims Facts

1. Operation Chakra V: CBI gets hold of four ‘kingpins’ in ‘digital arrest’ fraud

(Source – The Hindu, International Edition – Page No. – 4)

Context

Operation Chakra is a nationwide initiative launched by the Central Bureau of Investigation (CBI) to combat cyber-enabled financial crimes.

Operation Chakra

• It targets major cybercrime networks involved in digital fraud, data theft, and online scams, often operated from multiple locations across India.

• The operation includes coordinated searches, arrests, and seizure of digital evidence from suspects involved in cyber scams.

• It aims to dismantle organized cybercrime syndicates that impersonate officials to defraud individuals.

• The operation also focuses on crimes like “digital arrest” fraud, where victims are extorted under psychological pressure.

• The initiative involves collaboration with state police and advanced investigative techniques.

• It promotes public awareness and encourages reporting of cyber frauds via cyber helpline numbers.

2. India Eyes Early Harvest Trade Pact with EU

(Source – Indian Express, Section – Economy, Page – 17)

Context

Amid growing global trade tensions, India is accelerating efforts to diversify trade partnerships. One key strategy is pursuing early harvest agreements—limited-scope trade deals focused on high-priority issues particularly with major partners like the European Union and the United States.

Analysis of the news

Early Harvest with the EU: A Pragmatic Step

• India is in talks with the EU for an early harvest agreement that would liberalize tariffs on selected core trade items, allowing quicker economic benefits without waiting for a full Free Trade Agreement (FTA).

• This approach is aimed at ensuring that businesses and consumers in both regions begin reaping trade benefits early.

India’s Broader Trade Strategy

• Commerce Secretary highlighted that India is following a pragmatic and phased approach in its trade negotiations, emphasizing “first things first.”

• A similar strategy is underway with the US, where talks on a first tranche of a broader Bilateral Trade Agreement (BTA) are progressing and could conclude by the end of the year.

EU-India FTA Talks: Progress and Challenges

• India and the EU have conducted ten rounds of negotiations since July 2022, with significant progress in areas like dispute settlement.

• However, key issues like rules of origin and market access for certain sectors remain unresolved.

• The EU is particularly focused on gaining better access for its automotive and medical device exports.

Sectors Under Discussion

• Specific sectors discussed include processed agricultural goods, pharmaceuticals, chemicals, textiles, fertilizers, and automotive components.

• The EU’s emphasis on market access for cars and medical devices remains a sticking point, potentially influencing the scope and speed of the agreement.

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